Synthèse France Pour lIIB
Synthèse France Pour lIIB
Synthèse France Pour lIIB
During the year 2009, French financial legislation included several structural reforms as
a consequence of the financial turmoil. These have been conducted in accordance with G20
orientations and European authorities.
The reform of the French supervisory authorities is aimed at achieving three main objectives:
bolstering financial stability, reinforcing the security of consumers and increasing the visibility
of French positions within Europe and on the international stage.
The order of 21 January 2010 aims to modernise the French supervisory system for the
banking and insurance industries by merging the approval authorities i.e. the Comité des
entreprises d'Assurance (CEA Insurance Companies Committee) and the Comité des
établissements de crédit et des entreprises d'investissements (CECEI Credit Institutions and
Investment Companies Committee) with the control authorities i.e. the Banking Commission
and the Autorité de contrôle des assurances et des mutuelles (ACAM Insurance Companies
Supervisory Authority) to form a new structure to be called the Autorité de contrôle
prudentiel (ACP Prudential Control Authority).
Backed by the Banque de France, this new, independent administrative authority will be
headed up by the Governor of the Banque de France. Established in March 2010, it will help
increase consistency in the supervision of the various branches of finance. Its purpose is also
to strengthen the presence of the French authorities in international forums and the visibility of
the French two-pillar supervisory model: prudential authority (ACP) and market regulator
(AMF).
- Transparency rules:
The order requires banks to publish annually quantitative data on the compensation paid to
both executives and market operators. This data includes, notably, the amount of compensation
broken down into fixed and variable remuneration, share-based component and the number of
beneficiaries. Data also includes the amount of variable compensation with the breakdown
between the deferred and non-deferred portions and the acquired and non-acquired portions.
On 12 February 2010, France published its own list of non-cooperative jurisdictions that could
be sanctioned. This list of 18 states includes the OECD list minus the states that have signed a
tax treaty with France. This list shall remain in effect until 1 January 2011 and will be re-
evaluated according to the initiatives that the states and territories will have taken.
The proposed rule on banking and financial regulation multiplies tenfold the upper limit of
sanctions that can be levelled against entities and persons under its jurisdiction, up to EUR 100
million.
Lastly, the proposed rule stipulates that rating agencies or subsidiaries of groups of rating
agencies registered with the AMF are liable for registration and operating fees of between
EUR 7,500 and EUR 20,000 to be made to the AMF. For each year following the registration a
contribution will be due of at least EUR 10,000 or the previous year's operating income
multiplied by a rate that cannot surpass 0.5%. It is payable after a 3-month window following
the closing of the financial year.
Continuing to finance the economy is at the heart of the initiatives to stem the financial crisis.
The proposed rule on banking and financial regulation of 10 June 2010 outlines also a raft of
measures to improve financing channels.
• Benefiting businesses
- Modernising the system of takeover bids to increase shareholder protection and prevent
"runaway" takeovers of listed companies. (Articles 8,9,10)
- Promoting the development of credit insurance by allowing credit insurers to use the
FIBEN database that lists the Banque de France's ratings of companies. (Article 13)
- Introducing procedures for takeovers and "squeeze-outs" on the "Alternext" market in
order to improve small and medium enterprises' access to markets as well as guarantees
offered to shareholders and investors. (Articles 11,12)
- Facilitating SME's access to credit by merging the three public banking structures for
SMEs i.e. OSEO Financement, Garantie and Innovation (OSEO Financing, Guarantee
and Innovation agencies). (Articles 14 to18)
• Benefiting households
- improve disclosure on the insurance conditions for housing loans and to more easily
compare different offers by using a standardised form that has been obligatory since 1
July 2009,
- allow households to finance home improvements that boost energy efficiency thanks to
the 0% eco-loan created by the finance law for 2009 (the banks had made more than
75,000 offers at end-2009),
More recently, the law of 1 July 2010 on the reform of consumer lending, which transposes the
EU directive on consumer credit but also includes national provisions non-included in the
Directive, seeks to:
Improve the way in which the situation of those in debt trouble is accounted for by:
Sources:
Website of the French National Assembly http://www.assemblee-nationale.fr
Bill of 16 December 2009 on banking and financial regulation, minutes of the Council of ministers meeting of 16/12/09
and Impact Study
Law no. 2010-737 of 1 July 2010 on the reform of consumer credit, published in the Journal Officiel (official bulletin) of 2
July 2010